Exploratory drilling in Utah remained at the same level as that of the previous year, with a slight increase of total footage. The success ratio of exploratory wells was 17.2%, down 7.6% from 1960. Significant exploratory activity included 3 areas. Completions in the Four Corners part of the Paradox basin expanded the potential of that province, and discoveries in the southern part of the Uinta basin portend a considerable extent of Wasatch and Mesaverde gas accumulations. Of particular significance was the successful completion in the Grassy Trail area N. of the San Rafael swell. This marks the first commercial oil production in this province from Triassic Moenkopi sands. Development drilling was up 14.5% reflecting the exploitation of gas discoveries in the Uinta basin. The success ratio of 88.1% was up 4.5% from the previous year. Oil production was down 11.9%, largely resulting from conservation measures enacted by the Utah Oil and Gas Commission, but gas production increased 27.0%, with the development of the Uinta basin and Lisbon field. Leasing of federal acreage increased again in 1961, and more than 18 million acres are now under lease. A little over 5% of this is contained in the 57 units in effect. Nevada has one 2200-acre unit with 14 1/4 million acres under lease. In Nevada, 13 exploratory wells were drilled in contrast to only 4 tests completed in 1960. These were mostly shallow tests within a restricted area in Churchill County. The outlook for 1962 is for increased activity in exploration for gas in the Uinta basin, continuing development of the Lisbon area, and more widespread drilling for Mississippian objectives elsewhere in the Paradox basin.